Percentage-Of-Completion Contracts

6 Months Ended

Jun. 30, 2015

Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts and Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts

Our CIE balances by business segment are as follows:



	June 30,		December 31,
Dollars in millions	2015		2014
Technology & Consulting	$	38	$	38
Engineering & Construction	200		357
Government Services	89		73
Subtotal	327		468
Non-strategic Business	5		22
Total	$	332	$	490

Our BIE balances by business segment are as follows:



	June 30,		December 31,
Dollars in millions	2015		2014
Technology & Consulting	$	69	$	56
Engineering & Construction	209		212
Government Services	89		93
Subtotal	367		361
Non-strategic Business	117		170
Total	$	484	$	531

Unapproved change orders and claims

The amounts of unapproved change orders and claims included in determining the profit or loss on contracts are as follows:



Dollars in millions	2015			2014
Amounts included in project estimates-at-completion at January 1,	$	31		$	115
Changes in estimates-at-completion	42			3
Approved (a)	(27		)	(56		)
Amounts included in project estimates-at-completion at June 30,	$	46		$	62

Amounts recorded in revenues on a percentage-of-completion basis at June 30,	$	35		$	36


(a)	Includes $6 million of adjustments associated with the sale of our Building Group subsidiary.

The table above excludes unapproved change orders and claims related to our unconsolidated affiliates. Our proportionate share of unapproved change orders and claims on a percentage-of-complete basis was $73 million as of June 30, 2015 and $90 million as of June 30, 2014 on a project in our E&C business segment.

Liquidated damages

Some of our engineering and construction contracts have schedule dates and performance obligations that if not met could subject us to penalties for liquidated damages. These generally relate to specified activities that must be completed by a set contractual date or by achievement of a specified level of output or throughput. Each contract defines the conditions under which a customer may make a claim for liquidated damages. However, in some instances, liquidated damages are not asserted by the customer, but the potential to do so is used in negotiating or settling claims and closing out the contract.

It is possible that liquidated damages related to several projects totaling $8 million at June 30, 2015 and $12 million at December 31, 2014, respectively, (including amounts related to our share of unconsolidated subsidiaries), could be incurred if the projects are completed as currently forecasted. However, based upon our evaluation of our performance we have concluded these liquidated damages are not probable; therefore, they have not been recognized.